So far, this week has been pretty rough for the bulls. Not so much though for the bears and so far it has been a pretty good week for Shareplanner Subscribers. We have capitalized on some nice gains in SKF and QID. But the big question for many of you is just how oversold are we in today’s current market environment and how does it compare to the long-term price trends.
Looking at the chart below, that measures the number of companies in the S&P 500 are trading above their 50-day moving average, you will see that we are at historic lows for this indicators, the likes of which hasn’t been seen since late 2002 – which managed during that time to put in a bottom in the market and begin the long road to recovery. Can’t say for sure that we are at a bottom right now, but the markets have been doing a very good job at holding its recent lows.